The annual exclusion for gifts made to spouses who are not U.S. citizens has increased to $117,000.

For estates of decedents dying, and gifts made, in 2005, the maximum rate for the estate tax and the gift tax reduced to 47%.

For estates of decedents dying after 2004, the credit for state death taxes is replaced with a deduction for state death taxes.

An estate tax return for a U.S. citizen or resident needs to be filed only if the gross estate exceeds the applicable exclusion amount for the year of death, which has increased as shown below.

The annual exclusion for gifts of present interests made to a donee during the calendar year has increased to $12,000.

The annual exclusion for gifts made to spouses who are not U.S. citizens has increased to $120,000.

For estates of decedents dying, and gifts made, after 2005, the maximum rate for the estate tax and the gift tax is as follows.

The generation-skipping transfer (GST) lifetime exemption has increased to $2,000,000. The annual increase can only be allocated to transfers made during or after the year of the increase.